KBW Ventures increases stake in California-based, BlueNalu
Mita Srinivasan
What's the Deal

KBW Ventures increases stake in California-based, BlueNalu

Company secured $60 Million in convertible note financing that will enable completion of first commercial pilot facility for producing cell-based seafood, and support plans for market launch in late 2021

Middle East based, KBW Ventures has increased its stake in BlueNalu as part of the company’s recent $60 million in debt financing from new and existing investors. Rage Capital led the $60 million convertible note financing for BlueNalu, with other investors including Agronomics, Lewis & Clark AgriFood, McWin, Siddhi Capital, AiiM Partners, Clear Current Capital, CPT Capital, Flat World Partners, Losa Group, OurCrowd, Silicon Valley Community Foundation, Stray Dog Ventures in addition to KBW Ventures and several others.

BlueNalu, an innovative food company producing a variety of seafood products directly from fish cells, announced completion of its Series A round of $20 million in early 2020 and its Series Seed round of $4.5 million in early 2018.

Prince Khaled bin Alwaleed bin Talal Al Saud, founder and CEO, KBW Ventures, said, “We have increased our stake in BlueNalu by investing for the second time. Our commitment to inject further capital is based on the company’s impressive forward roadmap, detailing a clear path to ramping up production and bringing its first product to market. KBW Ventures is pleased to play a role in the largest financing ever for a cell-based seafood company, aligning ourselves with mission-driven businesses that seek to solve the world’s food security issues sustainably.”

The financing is intended to enable BlueNalu to achieve several significant milestones over the coming year, including opening a nearly 40,000 square foot pilot production facility, completing FDA regulatory review for its first products, and initiating marketplace testing in a variety of foodservice establishments throughout the United States.

BlueNalu is currently establishing joint venture partnerships within key markets where it will operate. These partnerships are expected to enable them to navigate regulatory pathways, lower the cost of goods, introduce new species and new product forms, and inform their global market strategy. Previously, BlueNalu announced five global strategic investment partners: Nutreco, based in the Netherlands; Pulmuone, based in South Korea; Sumitomo, based in Japan; and Griffith Foods and Rich Products Corporation, based in the U.S.